Stellar (XLM) Finally Wakes Up – Is the Sleeping Giant Ready to Run?

After five brutal months of sideways action, Stellar just punched through resistance like a trader spotting a ’buy’ signal during bonus season.

The breakout play

XLM’s 18% weekly surge isn’t just another dead-cat bounce—this time, volume confirms the move. Network upgrades and fresh institutional partnerships suggest the blockchain might finally be shaking off its ’payments also-ran’ reputation.

But here’s the catch

While the charts look bullish, remember this is crypto: every ’sure thing’ rally starts with a 20% pump... and ends with a 40% rug pull (usually right after your leverage position opens).

One thing’s certain—if XLM holds these gains through the week, even the Wall Street analysts who still think ’blockchain’ is a type of Excel formula will start paying attention.

65% top traders go for long positions

While examining the on-chain metrics, it appears that traders and investors have been strongly betting on the bullish side.

At press time, the Binance XLMUSDT Long/Short ratio s ratio stood at 1.89, signaling strong bullish sentiment.

In fact, 65.37% of top traders on Binance held long positions, while only 34.63% held shorts.

Data further reveals that 65.37% of top XLM traders on Binance hold long positions, while 34.63% hold short positions.

Source: Coinglass

$6.37 million worth of bullish bets 

Coinglass’s XLM Exchange Liquidation Map reveals that traders have been heavily over-leveraged at $0.2558 on the lower side (support) and $0.285 on the upper side (resistance), both of which are on the verge of liquidation.

At these levels, traders have built $6.37 million worth of long positions near the support and $1.63 million worth of short positions near the resistance over the past seven days.

Source: Coinglass

Apart from this, Spot Inflow/Outflow data pointed to an outflow of $1.19 million worth of XLM from exchanges in the past 24 hours.

Such Outflow from exchanges indicates potential accumulation, which could lead to buying pressure and an upside rally.

Source: CoinGlass

These bullish metrics show traders’ and investors’ strong belief and confidence in the bullish side, and they seem to be supporting the bullish price action, which signals massive upside potential for the asset.

XLM technicals back the bullish narrative

According to AMBCrypto’s technical analysis, XLM appears bullish and is poised for a massive upside rally.

On the daily time frame, the asset has broken out of a descending channel pattern and closed a daily candle above the key level, confirming this breakout as successful.

Based on the recent price action and historical pattern, if the XLM price holds above $0.275, there is a strong possibility it could soar by 30% until the asset price reaches the $0.375 level in the future.

Source: TradingView

This bullish thesis will only hold if the XLM price remains above the $0.26 level, otherwise, it may fail.